North Dakota Code 13-10-02 – Definitions
For purposes of this chapter:
Terms Used In North Dakota Code 13-10-02
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
- Individual: means a human being. See North Dakota Code 1-01-49
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- Property: includes property, real and personal. See North Dakota Code 1-01-49
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- Truth in Lending Act: The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on Source: OCC
1. “Depository institution” has the same meaning as is currently defined under section 3 of the Federal Deposit Insurance Act and includes any credit union.
2. “Federal banking agencies” means the board of governors of the federal reserve system, the comptroller of the currency, the director of the office of thrift supervision, the national credit union administration, and the federal deposit insurance corporation.
3. “Immediate family member” means a spouse, child, sibling, parent, grandparent, or grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive relationships.
4. “Individual” means a natural person.
5. “Loan processor or underwriter” means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed, or exempt from licensing, under this chapter.
a. For purposes of this subsection, “clerical or support duties” may include subsequent to the receipt of an application:
(1) The receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; and
(2) Communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.
b. An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator.
6. “Mortgage loan originator”:
a. Means an individual who for compensation or gain or in the expectation of compensation or gain:
(1) Takes a residential mortgage loan application; or
(2) Offers or negotiates terms of a residential mortgage loan; b. Does not include an individual engaged solely as a loan processor or underwriter except as otherwise provided in subsection 4 of section 13-10-03; c. Does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with North Dakota law, unless the person or entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator; and
d. Does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. § 101(53D).
7. “Nationwide mortgage licensing system and registry” means a mortgage licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators for the licensing and registration of licensed mortgage loan originators.
8. “Nontraditional mortgage product” means any mortgage product other than a thirty-year fixed rate mortgage.
9. “Person” means a natural person, corporation, company, limited liability company, partnership, or association.
10. “Real estate brokerage activity” means any activity that involves offering or providing real estate brokerage services to the public, including:
a. Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property; b. Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property; c. Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than in connection with providing financing with respect to any such transaction; d. Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and
e. Offering to engage in any activity, or act in any capacity, described in this subsection.
11. “Registered mortgage loan originator” means any individual who:
a. Meets the definition of mortgage loan originator and is an employee of: (1) A depository institution; (2) A subsidiary that is:
(a) Owned and controlled by a depository institution; and
(b) Regulated by a federal banking agency; or
(3) An institution regulated by the farm credit administration; and
b. Is registered with, and maintains a unique identifier through, the nationwide mortgage licensing system and registry.
12. “Residential mortgage loan” means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling, as defined in section 103(v) of the Truth in Lending Act, or residential real estate upon which is constructed or intended to be constructed such a dwelling.
13. “Residential real estate” means any real property located in North Dakota, upon which is constructed or intended to be constructed a dwelling.
14. “Unique identifier” means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry.